Groupon Utilizes Credit Cards in New Loyalty Program - Other News

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Groupon Utilizes Credit Cards in New Loyalty Program

October 3, 2011

The foundation of any rewards program is loyalty. From the “buy 9, receive the 10th one free” punch cards handed out at many cafés and nail salons around the country to the airline bonus programs attached to credit cards that allow consumers to accumulate miles for every dollar they charge on a card. All different types of companies are attempting to cultivate customer loyalty and repeat business by recompensing patrons for their repeat business.

Groupon, the daily deal giant of the web, has just announced the launch of the Groupon Rewards Program. Designed to dole out perks above and beyond the already substantial savings Groupon users receive, the aim of Groupon Rewards is to entice people to frequent the shops at which they received the initial deal beyond that first visit.

While this new program should please both consumers and merchants, Groupon is primarily interested in appeasing the retailers and shop owners who, more often than not, suffer a loss when customers buy a deal from Groupon. That’s because customers tend to redeem their deals without spending any additional money or making any return visits to the establishment in the future.

“We think there are three components merchants need to run their business in the new world of local commerce,” AdWeek’s website reports Groupon’s senior VP of product Jeff Holden as having told TechCrunch.

“The first is the daily deal, which Groupon perfected as a customer acquisition product and reached massive scale. The second is Groupon Now, its mobile app that lets local merchants do yield management by offering dealswhen business is slow.

The third now is Groupon Rewards, which is built around the concepts of customer loyalty and retention.

The program will enable any merchant that offers a Groupon deal the ability to award loyal customers additional perks after they spend a certain amount of money. The purchases will be tracked through the credit card accounts that buyers register on the Groupon site.

As long as a customer uses the same credit card to purchase deal from Groupon, they will be logging in their loyalty.

Groupon, as a company, has been focusing on wide expansion. They now offer deals to consumers in 45 different countries and 175 North American markets, according to the iBn website.

Interested merchants can begin signing up to participate in the Rewards program starting October 1 and customers can expect the rewards by the middle of the month.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.

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